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The PC market is fine.

The PSP market just looks dead, because if it wasn't for piracy very few people would actually buy the system.

I'm the only person i know in real life with a PSP that isn't hacked.

What piracy predominantly would effect is used game sales if it affected anything.

People want to pay a fair price for products.  It's in most peoples consiousness from their socilization.  If people are pirating they don't consider the price fair.